Student Transportation of America Ltd. Closes $42 Million Offering of Common Shares



Student Transportation of America Ltd. (“STA” or the “Company”) (TSX:STB) announced today that it has closed its offering of common shares at a price of $3.50 per common share for total gross proceeds of $42 million. The offering was underwritten by a syndicate of underwriters led by Cormark Securities Inc. and Scotia Capital Inc. and includes BMO Nesbitt Burns Inc., Wellington West Capital Markets Inc., CIBC World Markets Inc. and National Bank Financial Inc. The Company now has over 54 million common shares outstanding.

The net proceeds from the offering will be used, directly and indirectly, to repay indebtedness under the Issuer’s credit facilities, which will provide additional borrowing capacity to fund the
Issuer’s continued growth strategy, including through acquisition, bid-in
and conversion opportunities, and for general corporate purposes. The indebtedness to be repaid was incurred in the last two years for growth purposes. As previously disclosed, the Company has already secured new bid award contracts for the 2010 fiscal year which is expected to generate approximately US$25.0 million in additional annual revenues.

“This new equity raise allows us to continue our growth strategy as we head into our new fiscal year,” said Denis J Gallagher, CEO. “We are advised that a good portion of the participation in this offering is going to retail investors who, we are glad to see, appreciate the value of our stable predictable cash flows and dividends. We remain committed to long term investors and we hope to attract new shareholders as we continue to build a great company. We also understand that two additional investment banks will be launching coverage on
our common shares to add to the four currently providing coverage.”

The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except, and in compliance with applicable U.S. state securities laws, in certain transactions exempt from the registration requirements of the U.S. Securities Act.


Student Transportation of America is the fourth-largest provider of school bus transportation services in North America, conducting operations through local operating subsidiaries. Student Transportation of America has become a leading school bus transportation company by aggregating operations through the consolidation of existing providers and conversion of in-house
operations and currently operates more than 5,600 school vehicles in North America. For more information, please visit

Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of applicable securities laws including, but not limited to, those identified by the expressions “expect”, “intend”, “will” and similar expressions to the extent they relate to STA. These forward looking statements are not historical facts and reflect expectations of management regarding future results or events. Forward-looking statements involve significant risks and uncertainties, and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not or the times at or by which the performance or results will be
achieved. A number of factors could cause actual results to
differ materially from the results discussed, expressed or implied in any forward-looking statement made by us or on our behalf, including, but not limited to, the risk that the conditions to the offering will not be satisfied and/or that the offering will not close, as well as the factors discussed under “Risk Factors” in our Annual Information Form. Material factors and assumptions that were relied upon in making the forward-looking statements include, but are not limited to, that the conditions to the offering will be satisfied and that the offering will close. Although the forward-looking statements contained in this news release are based upon what STA believes to be reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements, and the differences may be material. These forward looking statements are made as of the
date of this news release and, except as required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

SOURCE: Student Transportation of America Ltd.

SOURCE: Student Transportation of America ULC

INVESTOR CONTACTS: Student Transportation of America Ltd., Denis J. Gallagher,
Chairman and CEO, (732) 280-4200; Patrick J. Walker, Executive VP and CFO, (732)
280-4200; Keith P. Engelbert, Director of Investor Relations, (732) 280-4200, (732)
280-4213 (FAX), Email:; Website:

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